EuroEconomica, Vol 37, No 3 (2018)

Strategies of launching Swedish automobiles - SAAB into Indian market

Visar Rrustemi

Abstract


Abstract

 

As domestic markets have become saturated, multinational corporations (MNC) are turning their attention to international markets to increase their market share, revenues and their profits. MNCs activities have become increasingly global in scope, whereby going abroad is crucial if they are to succeed. This process is a challenge because the MNCs needs to overcome the barriers which hinder their entry into the targeted markets. They have to map outan entry strategy and choose the right entry mode. The focus of this paper is on how General Motors (GM) as a MNC can launch the Swedish SAAB brand of cars into India. Our analyses, which cover the period up to 2010,suggest that the best way to penetrate the Indian car market was by choosing the mix between exporting and local assembly as their entry mode. This helped GM to successfully penetrate its products, control investments and increase its competitive strength against domestic and foreign firms within the Indian market. Although recently the SAAB is in difficulty and almost bakrupt, the importance of this paper rests on the lesson how car manufacturers can enter foreign markets, especially in India. 

Keywords:car industry, SAAB, indian market, entry mode, barriers

JEL: D24, L11, M31


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